Daily outlook for CAD: Commerzbank

Quotes from Commerzbank Corporates & Markets:

-CAD: Overshadowed by the US data the inflation data from Canada also surprised on the upside. In Canada too core inflation rose more notably than expected at 0.2% mom. The yoy rate remained stable at 2.2% and thus remains just above the Bank of Canada's target of 2%.

-As BoC governor Stephen Poloz has made it clear recently that the surprise rate cut in January had been an "insurance" against the effects of the oil price collapse the market is likely to increasingly abandon rate cut speculation.

-However, CAD is unable to benefit much as the USD strength is having an overbearing effect at present which will be another good reason for the BoC to leave everything unchanged in March.